Hertz Global Holdings, Inc. Q1 2022 Earnings Presentation - April 27, 2022
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Hertz Global Holdings, Inc. Q1 2022 Earnings Presentation April 27, 2022
IMPORTANT DISCLOSURES
FORWARD LOOKING STATEMENTS NON-GAAP MEASURES AND KEY METRICS
Certain statements made within this presentation contain The following non-GAAP measures and key metrics
forward-looking statements. Forward-looking statements will be used in the presentation:
are not guarantees of performance and by their nature
are subject to inherent uncertainties. Actual results may ▪ Adjusted Corporate EBITDA
differ materially. Any forward-looking information relayed
▪ Adjusted Corporate EBITDA Margin
in this presentation speaks only as of April 27, 2022, and
▪ Adjusted Net Income
Hertz Global Holdings, Inc. (“Hertz” or the “Company”)
undertakes no obligation to update that information to ▪ Adjusted EPS
reflect changed circumstances. ▪ Adjusted Operating Cash Flow
▪ Adjusted Free Cash Flow
Additional information concerning these statements is ▪ Average Vehicles
contained in the Company’s press release regarding its ▪ Average Rentable Vehicles
first quarter 2022 results issued on April 27, 2022, and in ▪ Vehicle Utilization
the “Risk Factors” and “Forward-looking Statements”
▪ Transaction Days
contained in the Company’s 2021 Annual Report on
▪ Total RPD
Form 10-K filed on February 23, 2022, Quarterly reports
on Form 10-Q and other SEC filings available on the ▪ Total Revenue Per Unit Per Month
SEC’s website, the Hertz website, or from the Company. ▪ Depreciation Per Unit Per Month
Note: Definitions and reconciliations of non-GAAP measures and definitions of key metrics are provided in the Company’s
first quarter 2022 press release issued on April 27, 2022, available on the Company’s website.
2
AGENDA
BUSINESS FINANCIAL RESULTS
OVERVIEW OVERVIEW
Stephen Scherr Kenny Cheung
Chief Executive Officer Chief Financial Officer
3
BUSINESS OVERVIEW
STRATEGIC HIGHLIGHTS
Q1 2022 KEY BUSINESS METRICS
ADJUSTED MONTHLY
REVENUE CORPORATE ADJUSTED EPS REVENUE PER
EBITDA UNIT
$1.8B $614M $0.87 $1,326
ADJUSTED
NET CORP.
LIQUIDITY OPERATING
LEVERAGE
CASH FLOW
0.5x $2.7B $677M
Leveraging technology, talent, brand and a strong financial
position to advance Hertz strategy
5
PROGRESS ON STRATEGIC INITIATIVES
Expanded Customer Electric Vehicles & Fleet Digitization
Channels Diversification
▪ Diversifying customer base ▪ Teslas now available in multiple ▪ Cloud-based API architecture to
(RAC, ride sharing, corporate) markets across ride sharing and enable co-development with
RAC; agile movement of partners
• Growing in leisure travel in
vehicles between segments
RAC; increased collaboration ▪ Telematics-enabled fleet
across travel industry ▪ Expanded EV offering to include management to enable rich,
• AmexGBT relationship Polestar and other OEMs in US, single source data
driving business travel Europe and APAC
participation; EVs helping ▪ Charging infrastructure build ▪ Pricing and fleet management
corporate customers meet ahead of plan: ~1,000 Level 2 engines to drive efficiency and
ESG targets chargers across 80+ markets improved ROA
• Uber drivers now renting with prospects to ~3,000 by end
Teslas in over 30 markets; of 2022 ▪ AWS collaboration to modernize
robust driver interest. and digitize key components of
▪ Carvana partnership increasing mobility platform
▪ Developing joint marketing direct-to-consumer sales
programs with businesses channel and adding flexibility to
fleet management
Building new revenue opportunities and systematic
operational efficiency
6Financial Results Overview
GLOBAL FINANCIAL HIGHLIGHTS AND KEY METRICS
$ in millions, except per share data and key metrics
GAAP Q1 2022 Q1 2021
Total revenues $1,810 $1,289
Net income attributable to Hertz Global $426 $190
Diluted earnings per share $0.82 $1.21
Weighted-average diluted shares outstanding 461M 157M
Cash flows from operating activities $621 $200
Liquidity at period end $2,658 *
Non-GAAP Q1 2022 Q1 2021
Adjusted Corporate EBITDA $614 $2
Adjusted Corporate EBITDA Margin 34% 0%
Adjusted Net Income (Loss) $403 ($52)
Adjusted Diluted Earnings (Loss) Per Share $0.87 ($0.33)
Adjusted operating cash flow $677 *
Adjusted free cash flow $79 *
Key Metrics Q1 2022 Q1 2021
Average Vehicles 481,211 367,600
Average Rentable Vehicles 455,517 361,561
Jan 65.6%
Vehicle Utilization Feb 78.7% 74.7% 75.7%
Transaction Days (in thousands) Mar 80.1% 30,621 24,648
Total RPD $59.17 $46.36
*Amounts not shown because they are not comparable to 2022 due to the Company’s restructuring
Total Revenue Per Unit Per Month (RPU) Jan $1,112 $1,326 $1,053
Feb $1,255
Depreciation Per Unit Per Month ($40) $219
Mar $1,609
*Amounts not shown because they are not comparable to 2022 due to the Company’s restructuring
Note: Revenue and Adjusted Corporate EBITDA for Q1 2021 includes $136 million and $13 million, respectively, that was attributable
to the Donlen business which we sold in March 2021 8DEPRECIATION DYNAMICS
Depreciation per unit in $/month/vehicle*
350
300
250
200
DPU in $/month
150
100
50
0
-50
-100
Q1 21 Q2 21 Q3 21 Q4 21 Q1 22
Average gross depr. (excl. fully depreciated) Net depreciation per unit
Gains on disposition exceed gross depreciation
*Q2 2021 gross depreciation is an outlier, attributable to a large increase in fully depreciated vehicles distorting the
quarterly average. Q1 2022 depreciation per unit per month was a gain of $40. This is a result of the strong market for
used cars, which tempers gross depreciation expense and elevates gains on vehicle disposition 9DEBT AND LIQUIDITY
Non-vehicle Debt Maturity Profile* ▪ Liquidity of $2.7B at March 31, 2022
• $1.5B unrestricted cash
• Nearly $1.2B available under First Lien RCF
• Adjusted Operating Cash Flow $677M
▪ Net Corporate Leverage of 0.5x
• No material non-vehicle debt maturities until 2026
$1,216
$1,000 ▪ ABS facility (HVF III)
• $2.5B Medium Term Notes issued
$500
• Repaid ABS variable funding notes
• Increased capacity for vehicle acquisitions
2022 2023 2024 2025 2026 2027 2028 2029
▪ $2B stock repurchase program
Term Loan B Senior Notes
• $1.2B repurchases through April 21, 2022
• $800M remaining under the plan
Healthy balance sheet; well positioned to fund strategic
initiatives
*As of March 31, 2022. Excludes $15M of other non-vehicle debt and the $245 million Term C loan since the cash is restricted to
collateralize letters of credit
10Q&A
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